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Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
What happened in the market last week?
Last Week Market Pair Changes (All data is taken from the MT4 VT Markets)
The U.S. dollar reached a one-week high against a basket of currencies due to strong U.S. consumer price data, raising expectations of higher interest rates by the Federal Reserve. The consumer price index (CPI) rose by 0.4% in September, maintaining the annual rate at 3.7%. The dollar index, which measures the U.S. currency against major peers, increased by 0.11% to 106.63, marking its most significant one-day rise since March. Safe haven buying due to the Middle East conflict and comments from Fed officials also bolstered the dollar’s strength.
The Japanese yen remained sensitive to intervention concerns, Sweden’s crown edged up, and China’s currency was impacted by deflationary pressures. The Canadian dollar saw an increase due to higher oil prices and expectations of a Bank of Canada interest rate hike.
Source: VT Markets Economic Calendar
What to focus on this week?
Traders should keep a close eye on US retail sales and the Consumer Price Index (CPI) reports from New Zealand, Canada, and the UK this week, as these updates could have a substantial influence on the market. Exercise caution and stay up to date with the latest developments to ensure a successful week of trading.
Here are some notable market highlights for the upcoming week:
New Zealand Consumer Price Index (17 October 2023)
In Q2 2023, the CPI for New Zealand increased by 1.1%.
The CPI data for Q3 is set to be released on 17 October, with analysts anticipating a 1.9% increase.
Takeaway: We have the upcoming release of New Zealand’s Consumer Price Index (CPI), which will provide insights into the inflationary conditions in New Zealand. This data is expected to be a significant market driver for the New Zealand Dollar. According to the forecasted figures, there is a chance that the New Zealand Dollar could strengthen in response to the CPI data.
UK Claimant Count Change (17 October 2023)
The number of people claiming unemployment benefits in the UK increased by 900 in August 2023.
An additional increase of 22,000 is anticipated in the upcoming data, due for release on 17 October.
Takeaway: The slight increase in the number of people claiming unemployment benefits in the UK in August indicates a minor slowdown in the British economy. The anticipated rise for September further implies the possibility of a continued economic deceleration. This could potentially have a negative impact on the British Pound.
Canada Consumer Price Index (17 October 2023)
Canada’s CPI rose by 0.4% in August 2023 compared to the previous month.
Analysts expect a 0.1% increase in the September figures, which are scheduled for release on 17 October.
Takeaway: Based on the anticipated figures, there’s a potential for a strengthening of the Canadian Dollar.
US Retail Sales (17 October 2023)
US retail sales saw a month-over-month increase of 0.6% in August 2023, surpassing the 0.5% uptick recorded in July 2023.
Analysts anticipate a 0.3% increase in the data for September, set to be released on 17 October.
Takeaway: The upcoming US retail sales report, a pivotal determinant of the US Dollar’s performance, will offer valuable insights into the state of consumer spending in the US. If the projected figures align with expectations, there is a potential for a strengthening of the US Dollar.
UK Consumer Price Index (18 October 2023)
CPI in the UK eased to 6.7% in August 2023 from 6.8% in the previous month, the lowest rate since February 2022.
CPI figures for the next reporting period are expected to further decrease to 6.5%.
Takeaway: The UK CPI data is set to be the primary market driver for the British Pound this week. According to the projected figures, there is a possibility that the Pound sterling could weaken.
Employment in Australia (19 October 2023)
Employment in Australia increased by 64,900 in August 2023, while the unemployment rate stood at 3.7%.
Analysts anticipate that the employment figures for September 2023 will reflect an increase of 20,900 jobs, with the unemployment rate expected to remain at 3.7%. This data is scheduled for release on 19 October.
Takeaway: The upcoming Australia Employment Change report, a key determinant of the Australian Dollar’s performance, will offer valuable insights into the labour market conditions in Australia. If the projected figures align with expectations, there is a potential for a strengthening of the Australian Dollar.
UK Retail Sales (20 October 2023)
Retail sales in the UK rose by 0.4% in August 2023, partially recovering from a 1.1% decline in July.
The next set of data will be released on 20 October, with analysts expecting a decrease of 0.3%.
Takeaway: The upcoming UK retail sales report, a critical driver of the British Pound’s performance, will offer valuable insights into the state of consumer spending in the UK. If the projected figures align with expectations, there is a possibility that the British Pound could weaken.
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
